HQ Mining Resources, GCR’s major shareholder, has provided a binding proposal to subscribe for a placement or underwrite a rights issue.
HQ Mining has provided a counter-proposal to the one offered by Heron Resources as reported to the ASX on 16th December.
The HQ Mining proposal is set out in the accompanying document and consists of two options; a placement subscription for a maximum of 680 million shares to raise $3.4 million or a minimum of 375,970,579 shares to raise $1.87 million matching the Heron Offer or an offer to underwrite a rights issue for the same numbers of shares as for the placement proposal.
Should the Company proceed to any new rights issue, the Corporations Act would preclude the Company from accepting an underwriting offer from HQ Mining unless management is unable to secure underwriting from other sources, including Heron.”
The Golden Cross board is meeting at 11am today to consider the Heron and HQ Mining offers.